You make an important point. Likud is the ruling party. Likud benefits directly from a fearful Israeli population in the form of won elections. So, any time the popularity of the Neocon Likud war party lags below a certain indicator, Bibi trots out the "ZOMG Iran haz teh nuukz!!!1!11" speech and the people fall in line.

Same happens in the US, re: War on Terror. "The Muzzies Are Gonna Git Us!!11!!"